Singapore's gold vaults fill up as the world's wealthy seek safe havens

Growing concerns over war, political instability and rising national debt are prompting wealthy individuals around the world to rethink where they store their physical gold. High-net-worth investors from the United States, Europe and the Middle East are moving gold bars to Singapore, rapidly filling the city-state's massive vaults.

Bloomberg reported Wednesday (local time) that Singapore's banks and precious metals dealers are expanding their facilities and services to meet surging demand from wealthy foreign clients seeking to store gold there.

According to Singapore-based precious metals dealer Jay Rotbart and Co., private gold holdings in Singapore are estimated to have exceeded 800 metric tons last year — roughly 16 times the level recorded in 2014. Much of the increase came from Europe, and the firm expects holdings to grow further this year and next year.

Manish Tibrewala, co-founder of Singapore family office Farro Capital, said wealthy families that previously stored gold elsewhere are moving some of their holdings to Singapore. Families that had not previously invested in physical gold are now buying it through banks and precious metals dealers and storing it in Singapore, he added.

As demand for gold storage grows in Singapore, businesses operating large-scale secure facilities are also expanding.

Gregor Gregersen, founder of Singapore precious metals storage firm Silver Bullion, started his business about 17 years ago storing a small amount of silver under his bed. In those early days, he met customers at a local train station to trade silver and gauge market demand.

The former German bank data architect now runs a six-story mega-vault called The Reserve.

The facility spans about 16,700 square meters and can hold up to 500 metric tons of gold. Including silver, it can accommodate the equivalent of roughly 30 percent of the world's annual silver supply.

Holdings among customers enrolled in the firm's gold storage program have tripled since early 2020, reaching about 8.6 metric tons as of September. Foreign clients account for roughly 90 percent of that total.

Gregersen said a surge in precious metals purchases during the COVID-19 pandemic strained capacity at his existing facility, prompting him to accelerate construction of a new vault that opened in 2024.

Another major storage facility in Singapore, Le Freeport — known as the "Fort Knox of Asia" — faces a similar situation. The operator said in May that its underground vault space was nearly full due to sustained growth in gold storage demand. The facility can hold at least 1,700 metric tons of gold.

Together, Singapore's two large private vaults can hold a combined minimum of 2,200 metric tons of gold.

Geopolitical risk and anxiety over government finances are among the key factors driving demand for gold storage.

Central banks' increased gold purchases in recent years have elevated the metal's status as a major safe-haven asset. Some wealthy investors have also begun factoring in the political and fiscal conditions of their home countries, as well as the risks associated with where they store their assets.

Gregersen told Bloomberg that clients looking to store gold over the long term prefer countries with stable finances and credible defense capabilities.

Investors planning to hold precious metals for 30 to 40 years pay particular attention to a country's debt levels, pension system and political stability, he said.

Singapore is widely regarded as a country with relatively stable finances and a sound political system, as well as a well-established base as an international financial hub.

According to Jay Rotbart and Co., online inquiries from Western clients tripled over the past year. The US generated the most inquiries, followed by Canada, the United Kingdom and Australia.

Precious metals dealer Indigo Precious Metals said demand for gold from wealthy European and American clients rose about 25 percent over the same period.

A shift away from Switzerland — traditionally a leading gold storage hub — is also becoming apparent. Precious metals trading platform Gauld said about 40 percent of its European clients have either moved some of their Switzerland-stored gold to Singapore or chosen Singapore as the storage location for newly purchased gold.

Some investors reassessed Switzerland's neutrality and asset storage environment after Western nations froze Russian assets subject to sanctions.

Among wealthy investors, the focus is broadening from gold's investment returns to the long-term security of asset storage.

Singapore's government aims to leverage the inflow of foreign capital to develop the city-state into Asia's leading gold trading hub.

The Singapore Exchange plans to launch a gold over-the-counter clearing system by the end of this year. Major financial institutions including DBS, Deutsche Bank, JPMorgan and OCBC are participating in the initiative.

The Monetary Authority of Singapore has also decided to introduce gold custody services targeting foreign central banks and government-related institutions.

Tax incentives for eligible funds and family offices investing in physical precious metals have been expanded as well.

Through these measures, the Singapore government aims to strengthen its competitiveness across the full range of gold-related financial services — not just storage, but also buying, selling and trade settlement.

International financial institutions are also moving to expand their operations. Nomura's international wealth management division has launched a physical gold custody service in Singapore in response to requests from clients in the Middle East and other overseas markets.

OCBC expanded its physical gold trading and storage business this year. Gold holdings among clients of its private banking subsidiary, Bank of Singapore, rose more than 40 percent from the end of last year.

The volume of gold flowing into Singapore is also growing. Singapore's gold imports totaled 171 metric tons in the January-to-August period this year, up 44 percent from the same period a year earlier, according to trade data firm TradeData Monitor.

London, however, still dominates the global gold market. The British capital holds vast quantities of gold, including central bank reserve assets from around the world, and plays a central role in international gold trading and price discovery.

Singapore is competing with Hong Kong for the position of Asia's leading gold trading center, combining secure storage facilities, financial infrastructure and international trading services to attract overseas investors.

Gold storage operators say client demand is expanding beyond long-term storage to include trading convenience. As gold price volatility increases, the ability to sell quickly and recover funds when needed has also become an important consideration, they said.

Gregersen said investors seeking to diversify their assets may find it attractive to store gold far from their primary storage location.